All Forum Posts by: Ashley Schroeder

We actually just passed on a low income 12-unit apartment. We chose to pass because one of the buildings needs to be torn down so the numbers just wouldn't work for us. BUT turns out there is vacant land next door to build our own apartment complex. We wanted to jump on this opportunity initially because the numbers worked out to be AMAZING (before we knew about the condition of the one building). The main thing is there tends to be more hands on work with the lower end rentals. Not necessarily a bad thing, but typically the buildings are older, need more maintenance... etc. Also depending on who you rent to, there may be more hoops to jump through (an example would be if you plan on taking those who have government housing assistance). But I wouldn't be afraid of any of those. Success in renting typically depends on the area you are in. We have no problems renting our SFR. The apartments we were looking at had an excellent (better than the areas average) tenancy rate. Just make sure you do your homework before going ahead! Best of luck!

Definitely a tub to keep your rentability open.  Kids is the main focus but adults like baths too!  Agree to having only a shower in a master if it is a secondary bathroom.

Another factor is your DTI. If you use that $10k credit (from wherever), depending on the other debt you have (even if it is $0), that may skew your DTI to a point where a bank will not loan out a HELOC, even though the property is "paid for". Also; HELOC's typically aren't 100% of the value, so you would want to consider that as well. Good luck in whichever way you choose to start your business!

Derek Brandi what software do you use (if you don't mind sharing)?

I think part of what you need to think about is your long term goal. It's cash flow positive and you have equity in the property. Student loans are a pain hanging over your head but you have a pretty excellent rate. You have multiple options here, but my humble opinion says continue paying on your loans and either payoff the property or use that to invest in another property to add to your portfolio and cash flow. Especially if you aren't strapped for cash. If REI isn't your long term goal and the intention of this property was to help aid in paying off debt, then cashing out may be the best option (as long as the $120k pays off your debt). Only you can answer what you want to do, but I am seriously jealous of your student loan rates and I've busted my butt to keep my credit good and I haven't been able to get rates that low. Best of luck in your decision!

Great job!! After pictures are beautiful and looks like your homework paid off! Good luck in the sale of your other flip

Is there anything in the agreement that makes them uphold their end of the deal?  Viable reasons to terminate the PM if they aren't doing x, y, z?  It sounds like you're paying a PM to do nothing other than add more stress.  If they aren't doing their job then they should be let go.  Especially if you are doing everything already anyway.  We haven't worked with PM companies so I don't know the specific "rules", but I don't see why you wouldn't be able to reach out to YOUR tenant in regards to making sure they are satisfied with everything, including the PM. 

Congrats! 

Paying the old owner of the home?  After you have well established that you are the new owner and you are the one requiring rent... Sounds like more stall tactics to me!  It could even be a fake money order in that picture.  Good luck!  Keep us all updated

Hello BP!  Thanks for taking the time! 

We are just doing the beginning stages of setting up the rental portion of our business. How does everyone out there set up their accounts? This portion of our business will be strictly for rental properties (SFR and MFR). Following a podcast we watched we have a general idea of doing 1 checking account with 3 savings accounts (one for expenses, one for security deposits, and one for taxes and fees for example). Just wondering how others structure their accounts and what works best for them! Thanks!